A Break in Europe's Debt Gloom

Aggressive Selling of Government Bonds May Be Over, but January Will Bring Search for Buyers of New Paper

By

Tom Lauricella

Updated Dec. 5, 2011 12:01 a.m. ET

LONDON—While an end to Europe's debt crisis still appears a long way off, some in the market think the waves of selling that drove yields on many governments' bonds sharply higher may be over—at least for now.

There are, however, many caveats to this rare break in the clouds. Aside from each country's domestic investors, buyers of European government debt remain scarce. The opening months of 2012 will see Italy, the 17-nation euro...